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Supplementary Coverage

Last updated: November 7, 2017

What Does Supplementary Coverage Mean?

Supplementary coverage is additional coverage that a policyholder can purchase in addition to a primary insurance plan. It covers other expenses, such as lost wages or medical expenses, that the regular plan does not.

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Insuranceopedia Explains Supplementary Coverage

Regular insurance policies do not cover certain services and out-of-pocket expenses, which is where supplementary coverage comes in. Some of these policies reimburse deductibles, copayments, and coinsurance, while others provide a cash benefit that the policyholder receives in a lump sum or over a specified span of time.

One common example is Medigap, a supplementary coverage plan for those enrolled in Medicare. The latter does not pays for all health-related services and medical supplies, and Medigap helps fill in the gaps as the name suggests.

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